Infosys attrition rate drops in Q3, net employee addition slows down

In the third quarter of 2022–2023, Infosys employed about 6,000 new employees. The company set a 50,000 fresher recruiting target at the start of FY23, and 40,000 of them were hired in the first half of the year.

Nilanjan Roy, the company's chief financial officer, stated that the company will meet its annual projection during the current year but did not alter its hiring target. "I think we should be around that number by the time we end the year. We have continued to hire," he said.

The company has a large pipeline of new hires who go through the Mysore training program run by Infosys.

"They are on the bench now. We are training them, reskilling them. In fact that will give us some headroom for growth, looking ahead, so the question partly about do we need to hire more. We have a very substantial bench and I think our utilisation at about 81.7 is one of the lowest we've had. So we have some headroom there," Roy said.

He also mentioned that they have been training many of the freshmen they have employed during the year. "Over some time, they will start going into production because you can't overnight put a new project and have them with all the freshers. It was an investment we were ready to make because you can't overnight flip the model of putting freshers, and so we are ready to make that investment and then start bleeding them into the production projects and rotate the existing headcount. We're not so concerned, over some time that will start helping us," Roy said on the company's utilisation policy.

IT major followed in the footsteps of its peers by significantly slowing addition

The IT major has followed in the footsteps of its peers by significantly slowing addition. In the first quarter of this year, Infosys hired 21,171 more people, but in the second quarter, it hired only 10,032. The business hired 1,627 new employees in Q3. Net headcount addition at HCLTech decreased from 8,359 in Q2FY23 to 2,945 in Q3FY23. Tata Consultancy Services' headcount fell by 2,197 employees over the previous quarter.

They noted that the company's utilisation rate of 81.7 percent was a barrier and noted that the company has a large bench. Attrition fell from 27.1 percent sequentially to 24.3 percent on an LTM basis as it continued to trend downward.

"Quarterly annualized attrition continued to trend downwards and reduced further by another 6 percent during the quarter. We expect attrition to reduce further in the near term," Roy told analysts in the company's earnings call.

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